Rules 2003
1. Pursuant to section 172I of the Electricity Act 1992,
I notify the amendment of the Electricity Governance Rules 2003 ("the Rules") under section 172H of the Electricity Act 1992.
2. The empowering provisions for the electricity governance regulations in relation to which the Rules are made are sections 172D (2) (a), (b) and (e) of the Electricity Act 1992.
3. A brief description of the nature of the amendments follows:
Due to the system operator being required to enter into ancillary service arrangements prior to 1 November 2004 in order to maintain common quality, the following amendments to the Rules are made:
(a) A new term is included in Part A:
"transitional ancillary service arrangements" means contracts for the procurement of ancillary services entered into by the system operator between 1 November 2003 and 1 November 2004 and which have effect for any part of
the period between the operational date and
1 November 2004, as approved by the board;
(b) A new Rule 2 is inserted in section V of Part I:
2. Transitional ancillary service arrangements
The system operator may, with the approval of the board, enter into transitional ancillary service arrangements between 1 November 2003 and 1 November 2004. Any such transitional ancillary service arrangements are deemed, for as long as the Rules in this section have effect, to be ancillary service arrangements as if they had been entered into in accordance with a procurement plan. In particular all costs associated with transitional ancillary service arrangements (including
all amounts payable to ancillary service
agents, system operator administrative costs, contributions from asset owners under Rule 7.3.1 of section III of Part C and incremental costs under Rule 6 of section II of Part C) will be deemed to be allocable costs for the purposes of Rule 11.1 of section IV of Part C.
(c) Renumber the existing Rule 2 of section V of Part I as Rule 3 of section V of Part I.
(d) Amend the definition of "existing ancillary service arrangements" to:
"existing ancillary service arrangements" means contracts for the procurement of ancillary services entered into by Transpower which come into effect on or before 1 November 2003 and which are in force as at the operational date;
4. The amendments are made in reliance on the urgency provisions in section 172E (3) of the Electricity Act 1992.
5. These Rules come into force on 1 March 2004.
6. Copies of the Rules may be inspected free of charge
or purchased from the Electricity Governance Board (also known as the Electricity Commission), Level Seven, ASB Tower, 2 Hunter Street, Wellington, or from the offices of the Minister of Economic Development, 33 Bowen Street, Wellington.
The Rules can also be viewed on the Electricity Governance Board web site:
http://www.electricitycommission.govt.nz
Dated at Wellington this 22nd day of January 2004.
PETE HODGSON, Minister of Energy.